THE Bank of England was accused today of “lurching from wrong forecast to wrong forecast” amid warnings interest rates could be cut again.

The Bank of England has been accused of 'lurching from wrong forecast to wrong forecast'

The rate was reduced from 0.5 per cent to a historic low of 0.25 per cent on Thursday. But yesterday Ben Broadbent, deputy governor for monetary policy at the bank, said it could be closer to 0 per cent before the end of the year.

The rate had not changed for seven years. Brexit campaigner John Redwood MP said the bank needed to promote a “steady approach” after “over-reacting”.

He said: “They are already doing too much. They should wait for the data from the real economy.

James Sproule, chief economist at the Institute of Directors said: “The IoD remains sceptical that interest rates needed to be cut yesterday and certainly do not think that further cuts this year would be advisable.

“It has to be realised that business is not slowing because there are concerns about the cost of capital, where an interest rate reduction would be an appropriate response.

“The concern is confidence to invest, an issue far better addressed by the new Chancellor in his autumn statement.”

The bank’s governor, Mark Carney, said he is not in favour of negative interest rates – where investors are charged for banks holding large deposits.

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Mr Carney introduced a range of measures on Thursday to stimulate the economy and encourage lending

But when asked if the bank’s Monetary Policy Committee could cut interest rates again, Mr Broadbent said “absolutely”.

He said: “The majority of the people on the committee said were the economy to unfold in line with the forecasts we made yesterday, it is likely.”

Mr Carney introduced a range of measures on Thursday to stimulate the economy and encourage lending.